RBI removes cash withdrawal limits on current accounts

The Reserve Bank of India today revoked the limits placed on cash withdrawals from current accounts/ cash credit accounts/ overdraft accounts with immediate effect. However, the limits on savings accounts remain, the bank said in a notification.

As of now, the limit for withdrawal from savings accounts is Rs 24,000 per week.

The central bank also said the limits imposed on withdrawals from ATMs will be revoked from 1 Febraury.

“However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016,” the notification said.

The move will come as a relief for the small traders, who had a Rs 1 lakh per week limit until now. The complete removal of the withdrawal limits for these accounts and ATMs comes 83 days after the announcement of demonetisation of Rs 500 and Rs 1,000 notes.

Prior to this on 16 January, the RBI had more than doubled the daily ATM withdrawal limit to Rs 10,000 but retained the weekly ceiling at Rs 24,000. It had raised the weekly withdrawal limit from current accounts to Rs 1 lakh from Rs 50,000.

Before that the RBI had increased the daily withdrawal limit from ATMs to Rs 4,500 from Rs 2,500 effective 1 January.

The RBI had placed limits on cash withdrawals following the demonetisation of old Rs 500 and Rs 1,000 notes from 9 November 2016.

The 50-day demonetisation period ended on December 30. However, NRIs and Indians who were abroad during the demonetisation period have been given additional time to
deposit their old currency notes.